Zinnwald Lithium (LSE:ZNWD) — Investor Presentation

0:01 Good morning, and welcome to the ZINNWALD LITHIUM PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated in the right hand corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Anton Duplessi, CEO.

0:32 Good morning to you, sir. Thank you very much, and thanks to InvestoMeet for hosting this webinar. We really wanted to take the opportunity of speaking to shareholders and investors today, really in the light of primarily in the light of the PEA that we put out to the market last week and which summarized and and demonstrated our revised technical plan for for the project. And so that's really gonna be the main area that I'll focus on today. I won't spend a lot of time on on each slide. I'll focus on on some more than others given we're we're trying to keep this not too long. The standard disclaimer, which which one can read on our on our website.

1:22 Overview, really, for those less familiar with our company, we're an aim listed lithium development company. Our project is the 100% owned ZINNWALD LITHIUM project, which is located in the former East Germany. It's located about 35 kilometers south of Dresden on the Czech German border. As I mentioned before, we recently put out a PEA study for the project that demonstrates a project focused on producing battery grade lithium hydroxide with a strong pretax NPV of 1,600,000,000 and a very large resource. It's located in an excellent location, really, very much in the heart of the German automotive and chemical sectors. And the backdrop for lithium demand is extremely strong. And I'll get into some of these matters in a little bit more detail in a moment.

2:15 In terms of kind of our key project highlights, I've mentioned before location. You can see on that map on the right. We're very much in the heart of where there are existing and and being developed battery factories. So extremely well located from that that perspective within just a few 100 kilometers of our project are are really kind of almost the bulk of of battery demand or already existing and expected for for Europe. We will be a a meaningful supplier, so we'll produce around 12,000 tons per annum of of battery grade lithium hydroxide. We're a fully integrated producer. We will be a fully integrated producer when when built.

3:02 The economics of the project, as demonstrated in the in the PEA, are very, very robust. Pretax NPV on an 8% discount rate, $1,600,000,000. Pretax IRR of 39%, and a simple payback following start of production of of only three and a half years or less than three and a half years. Very long life, so we'll support a life of of over thirty five years based on the existing resource. And as I mentioned before, located very close to to end markets. Our processing technology, which we've been demonstrating by an extensive test with program is is simple and trialed in several other commodities of so it's a, you know, a lesser tech we've tried to mitigate the technical risk of the project on on that side.

3:54 The area that we're located in has been a mining area for a long time in the past of this existing infrastructure in in the area. So by products, I mean, unlike some other lithium projects in other parts of the world, we do have extensive byproducts, which are valuable. Our key byproducts are sulfate potash, which is fertilizer, and precipitate calcium carbonate, which is used as a filler in the paper industry. What's key to to any project is is minimizing waste and and and improving efficiency or having as efficient a project as possible primarily in terms of of of energy use and use of reagents. And, you know, we like to think that that what we what we have is a very low or zero waste operation with a possibility to find markets and applications ready for the bulk of what we produce.

4:50 And then the other thing is, you know, we will be a meaningful employer and generate significant tax revenues in the area that we will be operating in, which we think has, you know, has broader societal benefits. In terms of the lithium market, I think a lot of people are familiar. Primary end use, obviously, is in electric vehicles, but increasingly also in stationary storage. And as the amount of renewable energy in grids increases, that storage element is becoming increasingly important. We're seeing that as, you know, a huge area of demand for lithium ion batteries and therefore lithium.

5:36 The the price performance of lithium, particularly lithium carbonate, lithium hydroxide, has been really quite astonishing over the last couple of years. This chart on the bottom left shows the recent development with the spot price for lithium hydroxide, you know, touching $80,000 over the summer. And, you know, relative to the price we're assuming in our PA, which is $22,500, you know, spot pricing considerably above that and obviously supported by an expectation of a market deficit for some time to come as illustrated on that chart from past markets on the on the right. Europe, in particular, very focused on the green what they call the green transition.

6:25 And there was a statement out of out of EU commissioner, Oslo von Deleien, just yesterday about critical raw materials act to focus on really securing supply of the materials that Europe needs for that green transition. So if anything, macro events like the war in Ukraine, the pandemic have highlighted the need for local supply, and, you know, that that that has formed a formed and remains a core of of EU strategy. And then that is in line with with what the market is doing. So you've seen announcements for 27 battery gigafactories in Europe. So Europe is really becoming a a critical area of demand for battery metals, of which lithium is obviously a key one.

7:18 Moving on to our project itself. There's just a little map here that shows the location. We're located, as I mentioned, on the Czech German border. Our nearest large town is is Freiburg. We'll be an integrated operation, so producing all the way through to battery grade lithium hydroxide. So we we won't unlike some projects produced to a semi product, we will we will be a sort of an end end producer of of what goes into into a battery or into the cathode. We'll be a small footprint underground mine, and then we'll have the associated mineral and chemical processing on-site. Byproducts, I think I've mentioned four, high purity potassium sulfate and precipitated calcium carbonate.

8:06 And then we have a a mining license through to 2047 and extendable beyond then. Just on this map here, you can see that our license areas cover a deposit that's really part of a much larger deposit south of the border in in The Czech Republic. Those licenses are held by by the ZINNWALD project. And in fact, it's the it's really one continuous ore body. And on the picture on the right here, you can see me underground in the old mine that's been there for for for several hundred years, actually. And that's the the the Czech German border just on on that post behind me. In terms of why we changed the concept and how we've changed the concept, this slide really just goes through a little bit of the history of the project and the company since since we've controlled it. So we acquired the first 50% of the ZINNWALD project back in October 2020 when we created ZINNWALD LITHIUM.

9:10 We then spent some time consolidating ownership. The other owners the other 50% of of the project was owned by a German company called SolarWALD. We acquired that interest in June 2021, and that then gave us full control of the project and the ability to really relook at the the whole technical sort of design behind it. Previous project was focused on a niche product, lithium fluoride and production of around 5,000 tons per annum of that. So based on on an analysis of the market conversations with with sort of consumers of of lithium compounds, very clear that lithium hydroxide would would be a better area to focus.

10:00 We then spent some time proving that we could make make battery grade hydroxide, both technically feasibly and and and economically feasibly. We completed those tests in March of this year, and that then laid the foundation for kind of what is summarized in in our PEA as the revised technical concept. So we've moved from 25 from 50% of a project making or aim to make just over 5,000 tons per annum of lithium chloride to a 100% of a project that that can make, you know, around 12,000 tons per annum of lithium hydroxide with upside potential from from some of our satellite deposits to that. We've also sought to optimize the entire material flow within the project because that has important cost operating cost implications.

10:55 It also has implications in terms of minimizing the impact on on surrounding areas. And so we've we've sort of adopted a a policy of trying to, you know, keep everything keep the transport costs, you know, significantly lower through through reducing that. And that obviously has a a knock on benefit in terms of reducing our our c c o two impact. And everywhere, we've tried to look at how we can use infrastructure that already exists in the area to maximum benefit of of the project. This is quite an interesting chart. It shows effectively a a long section with the Czech German border on the sort of far right of this picture and then some of the existing infrastructure that I referred to earlier as well as where the ZINNWALD deposit is. Over on the right, you can see you can see the ZINNWALD deposit.

11:52 The sort of light gray area down here is the existing access tunnel, which is part of the existing infrastructure. There's also existing shafts to an old tin mine. And, really, the concept that we've laid out in the PEA is trying to utilize some of this existing infrastructure for ventilation, mine access, etcetera. Importantly, here, you know, what you can see is we we would be able to access our deposit from from below, which has significant benefits in terms of of material flow. We'll we'll also be looking at how we can use electric mining fleets as part of this concept, again, to reduce CO2 and reduce energy costs.

12:42 What you can also see on this chart over on the left is our sort of proposed site area will also allow reasonably close access to one of our satellite licenses, Falconheim, which we're in the process of doing exploration drilling on at the moment. In terms of overall resource, core ZINNWALD license has a 35 and a half million ton measured indicated resource. It also has about 4,000,000 tonnes of inferred, so 40,000,000 tonnes overall resource that supports over thirty five years of mine life at that 12,000 tonne annual production rate. We have a mining license on that deposit that's valid until 2047.

13:31 And this is this is really is one of the larger identified lithium resources in Europe. And as I mentioned, it's it's, you know, contiguous with with the ore body across the border. In addition to that, we have quite an interesting sort of regional footprint in terms of other exploration licenses in the area. So we've got the Falconheim exploration licenses exploration license, which is just seven kilometers from from our core license. We've we've done a detailed review of the historical exploration data on that license, and that has indicated to us the potential for a lithium resource there. We're in the process of of testing that. We have an exploration program consisting of 10 diamond drill holes that we started earlier this month.

14:22 And that coupled with the analysis of old core will hopefully allow us to to to prove up the potential of that deposit and and also work out how that could fit with the broader project and how it could how we could use that potentially to expand production beyond the 12,000 tonnes that we've contemplated in the PEA thus far. We also own the Zadersdorf. We hold the Zadersdorf exploration license, which is, you know, around 12 kilometers from from from the ZINNWALD license that has an historic resource on it, 25,000,000 tons over the with the with, you know, with the lithium with recognized lithium on that.

15:09 And then we also own also control the Oldenburg exploration license, which, you know, really governs the step out from from our core license and and, you know, it provides us with the potential to expand resources at at the core core license through that. We also think there's significant upside potential through new processing technologies or or or really all sorting technologies, and this is something we've been extensively testing over the last couple couple of months. We've been doing work both looking at hyperspectral analysis as well as laser all sorting. Those tests have been very positive and very encouraging in terms of proving the viability of of these technologies.

15:59 And really, what it means is if it can be effectively applied, it'll allow us to separate low grade particles from the material flow, which means you can do that before putting them into the more expensive processing stages. So it's a significant saving in terms of operating cost. There's also the potential to increase resources if if if this technology can be applied, and that could be that could be significant. It's not often that technology changes in mining, but really all sourcing technology is something that's that's come up in the last in the last sort of a decade and a half probably, and it's really something that that that is changing changing the industry. And it's very encouraging for us that this is a technology that that we've demonstrated can be applied to to our project.

16:54 In terms of our flow sheet, we've tested this extensively with, you know, a significant bulk sample. We've we've and we've done it at a at a pilot scale. Most of the test work's been done at a firm called in in Germany who specialize in salt technologies. And, really, I think the main point to make here is there's no aspect of this flow sheet that hasn't been proven in other mining operations in in its various component parts. So there's not there's not there's nothing kind of new or or unique about this, but putting it together in this way, we think gives us a very good result. Central to the design of our of our flow sheet is trying to minimize waste.

17:46 And, really, you know, kind of what we're aiming for is is is an extremely low waste operation. So one of the main discard streams is quartz sand that

17:58 can be used as a construction aggregate for road making making concrete, etcetera. So it has a potential use. And then our our our our main products, we, you know, we we we produce significant quantities of of quite valuable byproducts. So 57,000 tons approximately of of SAP that will primarily go into the fertilizer industry. Although we do make we've proven that we can make a a a a very high purity version of SAP, and that traditionally carries a a premium price in in the market. 16,000 tons of precipitated calcium carbonate that's typically used as a as a filler for making glossy papers in the paper industry. And, obviously, our our primary product is the 12,000 tons per annum of of lithium hydroxide.

18:51 In terms of inputs, you know, nothing sort of particularly toxic in there. We have very low usage of of acids. And one of the main sort of discards from our manufacturing process is the is the leach residue. And the concept there is that that get gets put back underground as as backfill to prevent subsidence and the like. So really, the whole idea here is to try and minimize minimize waste and maximize valuable saleable byproducts. Another point to make on the byproducts is the markets that those will go into are very big markets. So there's little risk of us swamping those markets with the volume that that

19:37 that we produce. So it's it's very highly saleable. Location infrastructure advantages. I've talked a little bit about this before. There are a number of of infrastructure aspects of the region that that we will operate in that that benefit us. It is a developed region. There is rail. There is gas. There is electricity. These are all vital elements of any mining project. We've also talked about the potential to use existing tunnels in the area. This creates some very exciting opportunities for us in terms of how we access deposit, how we manage material flows,

20:16 and and and how we how we develop things going forward. This is just a few pictures of of of the access tunnel. As you can see, it's an extremely good condition. We've been able to access that to to review it, and and, you know, it's extremely favorable for for what we're trying to do. Now coming to to the actual output of the PA in terms of numbers, obviously, there are a lot of assumptions that lie behind this and a lot of work that lies behind this. But this is just to lay out the broad broad results. So pretax NPV, $1,600,000,000 pretax IRR, 39%. Post tax NPV, and this is on an unlevered

21:04 basis. So assuming no debt for illustrative purposes as a standard for these kinds of studies. So that shows a post tax NPV of of of around $1,000,000,000 and a post tax IRR of of 29%. So extremely strong numbers. Initial construction cost, just over 300,000,000. And average life of mine operating costs, so it's key to for us because of the the the high volume of of byproducts that we have. We're looking at a post byproduct credit operating cost of around $6,200 or just over $6,000. And that plays the current spot price through the VM over $70,000 and current contract prices for the VM to the extent that one can see them in the market of, you know, well north of $30,000.

21:55 So

21:56 in terms of current market conditions, that's extremely competitive. It'll, you know, be a a cash generative business once it gets into operation, average life of mine, EBITDA of of close to $200,000,000. Now the underlying price assumption here is $22,500. We've based that on, you know, really looking at what a whole range of commentators are saying about where pricing is. It's obviously well below current spot levels, but we're, you know, trying to take a, you know, relatively realistic and conservative approach to that and and obviously realize that current pricing, you know, reflects a moment in the market.

22:43 But, certainly, the the forecast supports the level we've shown here. And certainly,

22:50 studies that have come up by peers have indicated levels, in some cases, well well above that. On the right hand side, you can see just a simple sensitivity chart showing, obviously, greater sensitivity to the lithium price assumption, but a pretty robust project, you know, even taking some fairly significant haircuts to some of those assumptions or, you know, pushing up OpEx or or or or CapEx assumptions depending on how how things move around. In terms of the overall project development timetable, you know, we've we've detailed some of this in the in the PEA, you know, obviously, in a number of milestones along here. Some of these things are are are in our control. Other things, you know, we will be reliant on inputs and decisions by others.

23:44 So this really sets out some of the some of the the the core areas. Intention is to have our bankable feasibility study, which is really a core document in terms of,

23:55 you know, the ultimate construction funding of the project to be complete by the end of next year. Alongside that, we're working on on other key streams, which is really around the permitting. Part of that is is is the EIA public engagement, etcetera. As I mentioned, some of these things are not obviously fully in our control because we all be reliant on interactions with with authorities and and and, you know, both local and and at a state level and a national level. But but this is really what what we're aiming for on on a broad basis with the intention of of really trying to be in production late twenty twenty six or thereabouts, which we think will also coincide with an extremely strong moment in the market if what projectors, you know, what common modern market commentators are saying around, you know, supply deficit comes to pass.

24:53 Sustainability, key to everything we do. I mentioned before, you know, a lot of the work that's gone into the project we've designed as part of the PEA is around limiting, you know, the impact on the environment. That's the physical impact. It's also the impact in terms of CO two on an ongoing basis. So trying to minimize transport, you know, trying to really limit the impact of this project on on the environment. And certainly, you know, against, you know, every different type of technology or project has different advantages and disadvantages, you know, we think in in a lot of these areas, we have have material advantages.

25:34 Again, ESG fundamental to this. I've talked a lot about the environmental impact. Social, another key area. This project will bring a considerable number of jobs to, you know, this region of Germany. It's a region that has, you know, been subject to demographic change, aging population, and, you know, and reducing population. And we think being able to bring jobs and tax revenue back to the area is something that's that's going to be appreciated. And then in terms of governance, we're we're UK listed PLC and take very seriously our our obligations from that. Strategy and focus. So really, you know, increasing production potential being a a significant supplier to the European market, we think is core to what we're doing.

26:28 We'll always seek to optimize the project in terms of cost position and c o two footprint, which is increasingly important for for people who who utilize lithium compounds and then, obviously, maximizing the overall economic construct of the of the project in terms of maximizing byproducts and and minimizing waste. Near term, I think I've talked about this really, you know, key thing is is completing the the bankable, which we hope to do by the end of next year. There are lot of components to that, including including the drilling, but also the exploration drilling that we're doing so that we can, you know, kind of demonstrate the upside and then optimizing optimizing the project.

27:14 And then just to really just to close on on the presentation, integrated project, so all the way to to a battery grade product, really not really in the heart of of Europe's both the chemical and the automotive industries, meaningful resource positions are long life asset. So this is an asset that is capable of catching several cycles. So the option value inherent in in the project is significant, we believe. We're working on a plan to to to get into production, to advance the project, And then the fundamentals, you know, relative to a lot of commodities, the fundamentals for lithium lithium hydroxide are extremely strong.

28:00 And then we we have an experienced leadership team, and and we also have a have a team on the ground in Germany, many of whom have been with the project since its inception. And we're we're working and expanding

28:12 on expanding that team and bringing in the necessary disciplines that that we don't have at the moment and expanding some that we that we that we do. Thank you. Anton, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just using the q and a tab situated on the top right hand corner of your screen. I'd also like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. And we received a number of pre submitted questions from investors, and I want to start up the q and a session with these. The first one reads as follows. How long will Europe need to import lithium for?

28:52 I think if what people are kind of forecasting in terms of lithium demand. So I think you've you've kind of seen the the overall lithium market a couple of years ago was only about 400,000 tons per annum. I've seen forecasts for Europe by 2030 of 800,000 to a million tons of lithium demand in Europe alone. So a significant volume, and that's backed up by the plans for for new gigafactories, etcetera. I think if all of the projects currently on the table to to produce lithium in Europe, and it's important to to note that there is no domestic production of lithium in Europe right now. But if all of the projects that are on the slate come to be, that will not fulfill that level of demand. So Europe really is going to be an importer of lithium for some time to come, and that just amplifies kind of how important it is to have, you know, as much of that supplied locally as possible. But, you know, it it's not

29:56 like we will get crowded out by other players. If we all perform, it still won't be enough. Perfect. Thank you very much. The next question here says, I understand that only the the feasibility study is required to start mining. Have the required authorities green lighted it? I think I addressed this in in the sort of development plan. We have to go through a permitting process with the authorities, and that's going to be key, you know, one of the key things in order to to get the project finally greenlit. And that's an ongoing process. Perfect. Thank you very much. And another question around the project, and I asked, do do you have good local slash political support for the project?

30:44 So we spent a lot of time with, you know, with politicians. I know this is obviously a key for for any project, and and certainly, the feeling we have is is there is a lot of support for this project, in in Germany. Thank you very much. Just turning on over to the next question. I see that Europe has been funding battery fracked factories. Is it doing the same for mining projects? Europe has put a lot of money into or the EU, I should say, has put a lot of money into into stimulating the growth of of battery factories. I think they've voted over over €3,000,000,000 for for that purpose. And I guess their strategy has been to kind of start with, you know, that that core piece.

31:32 I think they've been slow on on actual on actually, you know, doing something meaningful around raw material, But that is changing, and I don't know if people saw, but but yesterday, the EU sort of made a statement around, you know, critical mineral supply and how important it is. And so I think we can expect to see, you know, some some action from the EU, and we certainly hope to see some action from the EU in terms of actually supporting raw material suppliers. Although, you know, given that they are, you know, very much local things by virtue of you can't move resources around, you know, a lot of lot of what happens practically will fall on the on the states and regions in which which the projects actually reside.

32:24 Thank you very much, Anton. The next question here reads as follows. The PEA suggest production of circa 12,000 tons per annum battery grade lithium hydroxide. How much does Europe need of lithium hydroxide in total? So I think I've I spoke about this a moment ago. You know, projections are for, you know, 800,000 a million tons of of of lithium demand. So that includes, you know, all the compounds. I would expect that hydroxide will will form, you know, a significant proportion of that. It's difficult to say now which battery chemistries will predominate as, you know, as as things advance, But I would guess that it's, you know, at least half to more than half of of of that overall number would be my expectation.

33:16 Thank you very much. Another question around demand. Asking, do you think the demand for lithium will reduce over time? No. If anything, I think it will increase as, you know, people become, you know, more sort of sold on the idea of electric cars as charging facilities improve. As the cost of electric vehicles comes down, I can only see that the demand would would increase. And, you know, alongside that, you've got other areas of demand like stationary storage. You know? And as renewable energy increases as proportion of the grid, I see those things increasing as well. So, you know, as and the the cost of manufacture of lithium ion batteries, a big part of that cost is is actually in the production infrastructure of that.

34:09 As you see the cumulative capacity increasing, you'll get economies of scale, and that'll bring some of the production cost of these things down. So if we're seeing strong demand now with prices where they are, I I only see the demand would increase as as those costs and and and cost of supply come down. Certainly. Just changing topic slightly. How much waste do you expect to generate and what will you do with it? So waste is is, you know, a a big part of any project, You know? And I and I think I I sort of went through this in terms of of our flow sheet. Really, what we're focused on is trying to make this a as as low waste as possible. So, you know, we've talked about byproducts.

34:56 So, you know, we'll produce be producing, you know, 60,000 tons thereabouts of of SOP, 16,000 tons of PCC. So, again, that's, you know, what might be a waste stream in in in in in other you know, with a different flow sheet has actually turned into saleable product or highly saleable product in in ounce. Quartz sand is another area we will be generating significant volume. And, again, that is the thing that that had a use. We may have to store some of that material on a temporary basis, but it it ultimately does have a use, and we will seek to, you know, to make sure that it that it's used and not and not stored as as a discard. Perfect. Thank you very much, Anton. And sticking to a similar theme, what are the benefits of using electrical equipment apart from the obvious green credentials?

35:50 Yes. So in using an electric sort of mining system and fleet is is is core to our mine plans, and it's something certainly an area that we're going to, you know, focus on as as we refine our plans. So, you know, it it it has a number of advantages, obviously, in terms of the kind of energy cost versus, you know, running diesel equipment. It it's lower. Electric equipment is typically more efficient from a total energy use perspective. It's obviously more efficient in terms of or better from a c o two perspective. And, also, when you're designing a mine from scratch, particularly an underground mine, being able to use only electric equipment underground significantly changes your ventilation requirements and the cost associated with that. So a number of benefits.

36:44 Thanks very much indeed. Why have you used the $22,500 lithium hydroxide price in the PEA's financial model given the LME spot price is significantly higher? So a lot of the market for lithium trades not on spot, but on longer term contract prices. It's not always easy to see what those contract prices are in the market, but they are lower, and they're considerably lower than than the spot price. There are some players who who do disclose those price those prices, and from what we've been able to observe contract pricings probably in the in the mid 30 thousands at the moment. So still well above the 22,500 that we're utilizing.

37:29 But remember, we, you know, we're trying to project a price out for, you know, over thirty years here. And so we have to be, you know, somewhat conservative in in terms of what what we use. So we looked at what various forecasters are are suggesting as as a long term price, and 22,500 seems like it's very much in in the zone of of of what people are forecasting. And as I mentioned before, if you look at what, you know, some other projects have put out in their feasibility studies, you know, they are using numbers well above that. Thanks very much. Next question is really around people and ask, who's inward face the same issues that others are in terms of sourcing qualified personnel?

38:18 Sourcing qualified personnel is always a challenge and, you know, something we're we're we're focused on all of the time. I think a a project like ours, was important to remember with lithium projects is is a is a significant chemical element to them as well as mining. So you need really the two skill sets. You need, you know, both mining skills as well as sort of chemical industries skills. And, you know, one of the advantages of being in the heart of of what's really Europe's chemical industry in in in Germany is, you know, there are industrial chemists. Universities do produce people with those skills. And then on the mining side, you know, obviously, there's been less mining activity in Germany more recently, but there has been there has been some in Freiburg, which is the nearest big time to our project has a, you know, has a large and thriving mining and geological faculty.

39:15 So, you know, again, that's helpful from that perspective. Thanks very much. The next question here is as follows. The lithium price is on a constant upward trend. ZINNWALD is on a constant downward trend. Why is ZINNWALD missing out? So I think you have to see share price, you know, in in the broader market context. So, you know, the share indices generally have have suffered this year. It's been a it's been a bad year for equities for a number of region for a number of reasons, not not least, you know, a war in Europe and a tenant shock to to energy pricing. So the AIM index this year is down 30%. And then if you look at the mining industry, you know, across commodities, mining development companies have suffered with with share prices down, you know, as much as sort of 50 and over 50%.

40:13 And that has the lithium industry hasn't evaded that. So producers have benefited from high pricing, and their share prices have have responded to that. I'd say pretty much across the board, development projects, companies that that are predominantly development companies have suffered, and that's really an indication of of of, you know, the the the broader macroeconomic backdrop. We've also suffered a, you know, significant turnover in our register given that, you know, corporate actions from, you know, one of our larger holders back in Aura meant that, you know, almost 40% of our registers turned over in the first six months of this of this year, which has an effect on the share price.

41:00 Thanks very much. And the final pre submitted question we have here is, can you comment on your funding strategy? Sure. So we're a so we're a development company. And in order to progress the project, we will require additional funds from from time to time. We have you know, that said, we have cash on hand of about €5,500,000. And this and the fact that we've always adopted really a, I guess, a a prudent approach to to our balance sheet. So we, you know, we are cautious with the money we have, but at the same time, we want to advance the project quickly and as efficiently as possible. But really, the fact that we have that those funds on hand gives us the flexibility to manage when and in what form we raise capital. So it's, you know, it's something that we're constantly looking at.

41:55 Anton, thank you very much. That actually concludes the pre submitted questions. But as you can see, we received a number of questions throughout today's presentation, and thank you to the investors for submitting those. Could I just ask you to read out those questions and give responses to what is appropriate to do, and then I'll pick up from you at the end. Sure. So could you please reconcile US 1,600,000,000 NPV of the project together with a market cap of, you know, significantly less. So so we've got a market cap of just under $40,000,000, and our pretax NPV, so theoretical value of the project, 1,600,000,000 post tax, 1,000,000,000. So, obviously, we're trading at at a fraction of our theoretical value. And we would argue that, you know, that on that basis, we we are considerably undervalued.

42:45 And part of the purpose of putting out the study was to demonstrate what what this project could be, and we hope that that investors begin to recognize that. What is your target date to become a meaningful supplier? So, again, I think that's addressed in the presentation. It is dependent on a number of work streams being completed, and that will depend on input from and and approvals from from certain outside parties. But our intention is is to try and be in production late twenty twenty six. Are there any other examples of ZINNWALD LITHIUM being mined economically elsewhere in the world?

43:36 Not directly. No. I think there is a small operation in China that that does look at or that does exploit lithium containing micas. But, really, as I mentioned in in the flow sheet, there are no aspects of our of our overall flow sheet that are particularly unique or haven't been applied in other mining operations around the world. There's always something unique in putting everything together for for a specific ore body, but, you know, we have done extensive pilot scale tests on our flow sheet. We don't think that there are any major issues that we can see at this point on that front. What is the price per ton of quartz sand fertilizer in the paper product? We've got the details of that in in the PA.

44:38 Memory serves on on fertilizer or on the SOP, and we're using a blended price for high for high purity and and fertilizer grade. I think we're using around €875 per ton. That's really the the key the key by byproduct. On quartz sand, we're not assuming a particularly high price. It's not it's not in the model as a as a major contributor to to revenue. And the PCC, again, if I recall, it's around around a €150 per ton. Longer term funding assumptions around the overall CapEx when it comes when, you know, when we get to the point where we've made a a construction decision so that the 336,000,000 of of CapEx, you know, again, this is this is something that that the board will look into, you know, as we approach that moment. But typically, for for mining projects, still being a mixture of of debt and equity.

45:57 You know, we will also actively pursue grant type funding to the extent that that that that can be applied to this project, and we, you know, we are confident that, you know, that that there will be something on on on that side as well. So it will be a mix. Again, just talking about, you know, someone asking, have you noticed any interest from potential strategic partners or takers? Obviously, you know, the those are kind of conversation which, you know, to the extent that they progress to to the level where the market you know, where there's something that the market needs to know. We'll we'll we'll make announcements at at that point, but, you know, we're always testing the market in terms of in terms of our product.

47:02 Yeah. And, you know, there's a point at which it's it's a good strategic decision to to enter into agreements on that. You know, obviously, the the value of offtake gets more valuable the closer you are to to actual production. So there's a bit of a strategic game to be played there as well. I think as I'll kind of look through as I look through the rest of the questions, it's a question of you know, would would so they seem to leave it jumbled up here.

47:58 Do directors believe they personally own enough shares in the business? You know, we're obviously exposed to the business through long term incentive plans that are very much aligned with with how the share price performs and how shareholders generally do. So it's very much aligned with shareholder interests. Obviously, we're constrained in terms of market purchases of shares given we are insiders of of the business. And I think that really concludes the the the questions. There are obviously some there that I cannot answer because they relate to, you know, matters that are, you know, sensitive or where regulation prevents me from answering them, but I think the vast bulk of them, I've I've answered.

48:50 Anton, certainly, think you have, and I think you've addressed those questions you can from investors. And, of course, the company will review all questions submitted today and will publish those responses on the investment company platform. But just before redirecting investors provide you with their feedback, which is particularly important to yourself, Anton, could I just ask you for a few closing comments? Sure. You know, just to say we're we're very excited to have our PA out in the market. We think it's a comprehensive document, and we think that it you know, people read that. They they all have a good sense of of really what we're doing in terms of our strategy. We think it's an exciting project. Think, you know, certainly what the PA demonstrates is that it's very economically viable, and we look forward to taking it to to the next stage.

49:38 Anton, thanks once again for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This will only take a few minutes to complete, but I'm sure you'll be greatly valued by the company. On behalf of the management team of ZINNWALD LITHIUM PLC, we'd like to thank you for attending today's presentation, and good morning to you all.